Get on it, FHA!
This week, Lend America was disqualified from lending FHA backed loans due to submitting false documents and completing loans that didn’t meet FHA requirements (leading to $512,500 in fines and Lend America shutting their doors the day after their FHA approval was yanked).
Reuters reported today that Senator Charles Schumer “urged the Federal Housing Administration to make sure borrowers approved for an FHA loan by Lend America can still get a mortgage after it disqualified the lender.”
Will Lend America be the only mortgage originator to fall? What happens to the loans currently in process, who is responsible for completing them? Will laws change as the FHA sniffs out other offenders? What say you?